Prelims 2012 · Economy · Question 84
Despite having large reserves of coal, why does India import millions of tonnes of coal?
- It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use.
- Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the country.
- Steel companies need large quantity of coking coal which has to be imported.
Which of the statements given above is/are correct?
Answer
2 and 3 only
1. Incorrect. India does not follow a policy of deliberately conserving domestic coal by importing for current use. Imports happen mainly due to supply gaps and quality requirements, not such a stated policy.
2. Correct. A large share of India’s electricity is coal-based, and domestic production/logistics have often been insufficient to meet total demand of power plants.
3. Correct. Indian steel plants require coking coal, and domestic reserves of good-quality coking coal are limited; hence substantial imports are necessary.
Therefore, 2 and 3 only are correct.